Surmounting the Wealth Destruction Juggernaut

“The Dollar’s decline is a result of the “quantitative easing” the Fed has been stepping up recently. Quantitative Easing is a fancy term for printing fiat money and exchanging it for long term good and garbage securities held by Wall Street firms, as part of the president’s Working Group’s activities. The money has debased the value of the Dollar, and found its way into commodities, stock and bond markets. At some point here, stocks will no longer remain in an uptrend, as the Dollar’s debasement takes its toll. This policy will destroy purchasing power of households as households are not getting access to this additional trillions of dollars being printed by the Fed. Instead the money is going into markets and will be destroyed out of thin air as stock markets tank, resulting in the worst case scenario, too many dollars accompanied by a declining stock market. (i.e. Hyperinflation – Ed) According to the Fed’s own balance sheet, it has pumped $1.5 trillion of printed money into the system in this fashion over the past two years. This policy has accomplished nothing positive. Obama’s Chief Economic Advisor, Lawrence Summers, announced his resignation Tuesday. Central Planner policies during his tenure have been an abject disaster.” (emphasis added)

“Market Briefing”, Robert McHugh, 9/21/10

“I apologise to readers around the world for having defended the emergency stimulus policies of the US Federal Reserve, and for arguing like an imbecile naif that the Fed would not succumb to drug addiction, political abuse, and mad intoxicated debauchery, once it began taking its first shots of quantitative easing.

My pathetic assumption was that Ben Bernanke would deploy further QE only to stave off deflation, not to create inflation. If the Federal Open Market Committee cannot see the difference, God help America.

We now learn from last week’s minutes that the Fed is willing “to provide additional accommodation if needed to … return inflation, over time, to levels consistent with its mandate.”